The European Commission has prepared a series of legislative and other measures to be taken in 2000 in order to speed up the integration of risk capital markets and facilitate the access to private equity by European companies. As stressed in the 1999 Broad Economic Policy Guidelines, risk capital is an essential element for the promotion of entrepreneurship and innovation, the support of economic growth and the creation of new and sustainable jobs in Europe. The Commission therefore proposes to proceed by mid 2000 with regulatory actions that (i) facilitate the holding of equity in unlisted small and medium sized enterprises (SMEs) by institutional investors, (ii) make it easier for SMEs to raise cross-border risk capital and (iii) set the basis for the creation and smooth functioning of a EU patent system that would make innovation more accessible across Europe. Member States are called upon to act in their areas of responsibility and speed up implementation of their own national initiatives, notably in (i) taxation of new firms and of investment in venture capital funds, (ii) insolvency and bankruptcy legislation reform, and (iii) promotion of employee ownership schemes.